Written Commentary
GOLD / SILVER
The path of least resistance in gold and silver prices has shifted to the downside with both technical and fundamental forces pointing to slumping prices ahead. In fact, the gold charts have turned distinctly negative with a 6-day low in the early action and pressure flowing from both a stronger dollar and a tick higher in US interest rates. Even the silver market is failing to benefit from strong demand projections from the Silver Institute which predicted last week demand could propel silver prices 30% higher this year.
PLATINUM / PALLADIUM
After another all-time high the palladium market has retrenched despite ongoing evidence of surging Chinese auto catalyst demand. For a change, the platinum market yesterday joined the palladium market with an upside breakout and the highest trade since February 25th.
COPPER
Not surprisingly, the copper market is showing corrective action this morning after a 3-day low to high rally of $0.26! However, the market should be supported as a result of a return to daily tightening of LME copper warehouse stocks.
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